Japanese chipmaker Renesas agreed a $3.2 billion deal to acquire US-based Intersil, in a move targeting “large opportunities in the automotive, industrial and IoT markets”.
In a statement, Renesas said the tie-up forms part of its “accelerating focus of resources” in the three areas, as automotive becomes increasingly important for the semiconductor industry.
With car makers adding new technology for features like autonomous driving. the sector has seen a wave of consolidation to fuel sales, and comes amid slowing growth for chips in smartphones and computers.
Intersil supplies semiconductors for a variety of markets, including automotive, aerospace and consumer devices, and will help Renesas offer better products for in-vehicle entertainment, battery management and safety systems, reported Wall Street Journal, citing a company presentation announcing the deal.
Renesas also said the deal will enable a larger global footprint, and expand its product portfolio, particularly for analogue devices, “where the market is expected to increase by approximately $3.9 billion by 2020″.
Bunsei Kure, Representative Director, President and CEO of Renesas Electronics, said: “Intersil’s extensive portfolio of analogue and power devices as well as its strength in the automotive, industrial, and broad-based segments complement many of Renesas’ initiatives in these areas.”
The all-cash deal, subject to the relevant approvals, is expected to close in the first half of 2017.